Required

1) Calculate the FCF with step by step formulas

2) Financial ratio analysis: liquidity ratios, asset management ratios, debt management ratios, profitability ratios, etc.

3) Estimated required return on the company's stock by using the capital asset pricing model (CAPM).

4) Stock valuation. Use one of the following valuation models:

FCF valuation model with a constant growth rate on FCF.

FCF valuation model with non-constant growth

Dividend valuation model with constantly growing dividend

Dividend valuation model with non-constantly growing dividend

  

Transcribed Image Text:

Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/losses on derivative instruments Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/losses on marketable debt securities Total other comprehensive income/(loss) Total comprehensive income September 26, 2020 $ $ 57,411 $ 88 79 (1,264) (1,185) 1,202 (63) Years ended September 28, 2019 1,139 42 57,453 $ 55,256 $ (408) (661) 23 (638) 3,802 25 September 29, 2018 59,531 3,827 2,781 58,037 $ (525) 523 382 905 (3,407) 1 (3,406) (3,026) 56,505 Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/losses on derivative instruments Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/losses on marketable debt securities Total other comprehensive income/(loss) Total comprehensive income September 26, 2020 $ $ 57,411 $ 88 79 (1,264) (1,185) 1,202 (63) Years ended September 28, 2019 1,139 42 57,453 $ 55,256 $ (408) (661) 23 (638) 3,802 25 September 29, 2018 59,531 3,827 2,781 58,037 $ (525) 523 382 905 (3,407) 1 (3,406) (3,026) 56,505

Answer rating: 100% (QA)

1 Calculation of FCF FCF Free Cash Flow Cash flow from operations Capital expenditures Cash flow from operations Net income Noncash expenses such as depreciation amortization etc Changes in working ca... View the full answer